Accumulate Infosys, says Rajesh Agarwal

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Accumulate Infosys, says Rajesh Agarwal

Accumulate Infosys with a target of Rs 2900 in 6-9 months, says Rajesh Agarwal, Head of Research at Eastern Financiers Limited.

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Excerpts from Your Stocks on CNBC-TV18 Watch the full show » ALSO READ See previous views by Rajesh Agarwal See what other Experts & Brokerages are saying about Infosys See messages about Infosys

Accumulate Infosys with a target of Rs 2900 in 6-9 months, says Rajesh Agarwal, Head of Research at Eastern Financiers Limited.

Agarwal told CNBC-TV18, "The Infosys numbers were better than expected yesterday. What negatively surprised us was the flat guidance which they provided for the Q4. One thing we have to understand that the problems in the US and Europe are still there and IT companies as a whole are going the face problems not only in getting better orders or realisations but also on the front of aggressive pricing from competitors."

He further added, "Infosys being a leader might be able to get through all this and maybe able to report a growth of 10-12% but getting any surprising positive upmove in short-term is quite impossible because the problems are there."

"Going forward we believe that for the guidance which they have provided for 147.13 for the EPS for full year is taken on a dollar rate of 52 which we believe would again be tough to achieve because we believe that dollar would stabilise around Rs 51 and that would be an impossible task. But going forward in FY13 we believe the company would be able to report an EPS of 170 and with that in mind we accumulate rating on stock with a target of Rs 2,900 in the next 6-9 months. In the short-term there would be pain because there was a lot of build-up on the stock prior to the results."